Selecting the right manufacturing KPIs can feel overwhelming—especially when you’re just beginning to standardize performance metrics across multiple lines or sites. Many manufacturers struggle with where to start. One highly effective approach is to focus on setting realistic, achievable targets for your operators, beginning with planned cycle time.
Ideal vs Planned Cycle Times
In a recent webinar, Bryan Sapot, VP of Smart Factory at Nulogy Smart Factory, shared valuable insight on how to use planned and ideal cycle times as complementary metrics for operational improvement.
“Set planned cycle time as the achievable goal that operators should strive for. In Nulogy Smart Factory, you can define this planned rate based on your staffing levels and historical data. It’s what you believe the machine should realistically do in a production setting. Then, separately, you can define the ideal cycle time—which is the theoretical maximum speed or plate speed of the machine, usually provided by the OEM.”
This dual-metric approach serves both the shop floor and strategic leadership. Operators and supervisors use the planned cycle time to guide daily performance and keep morale high—because the target is realistic, not impossible. On the other hand, engineering, maintenance, and leadership teams can use the ideal cycle time for long-term analysis and conversations with equipment suppliers.
Bryan shared a compelling real-world example:
“One customer in the cannabis industry had a machine for producing pre-rolled joints. The OEM claimed a plate speed that was 30% faster than what the machine could ever achieve in real life. After we added ideal cycle time tracking into our product, the team was able to demonstrate the gap to the vendor. That prompted the OEM to re-engage and fix several engineering issues. The result? Improved performance and a more realistic understanding of what the equipment could deliver.”
This approach does more than just fine-tune performance reporting—it fosters a culture of continuous improvement. It helps operators feel successful by setting goals they can meet and creates transparency about the performance ceiling for every asset.
The Role of TPM and Early Equipment Management
When you’re evaluating which KPIs to track, it’s also important to consider the broader context of your improvement strategy. Total Productive Maintenance (TPM), particularly the pillar of Early Equipment Management (EEM), provides a strategic lens.
EEM involves using insights from operations and maintenance teams to influence the design of future equipment. This feedback loop ensures that new machines are easier to maintain, more reliable, and better suited to the operational needs of your facility. It’s not just about solving today’s problems—it’s about building smarter systems for tomorrow.
By tracking both planned and ideal cycle times, you’re already contributing valuable data to this feedback loop. This insight can inform procurement decisions, improve communication with OEMs, and reduce the life-cycle cost of equipment.
Key Takeaways for KPI Selection
- Start with planned cycle time – It sets realistic expectations, supports operator engagement, and provides a meaningful baseline for improvement.
- Use ideal cycle time for strategic analysis – Understand your true performance potential and hold vendors accountable.
- Contribute to EEM through KPI tracking – The data you collect today can lead to better equipment decisions tomorrow.
For manufacturers struggling to prioritize which metrics to focus on, this is a practical and high-impact place to start. By balancing achievable shop floor targets with aspirational benchmarks, you can drive immediate improvements while also laying the groundwork for long-term performance gains.
Not sure where to get started? Take the 5-minute Smart Factory Digital Assessment. You can watch a demo or talk to an expert to see if Nulogy Smart Factory is the right fit for your company.
